Smart Grid can help Gulf countries save $1 billion per year

Smart Grid can help Gulf countries save $1 billion per year

Greentech Lead Middle East: A Northeast Group study
said Gulf countries can save minimum of $300 million to $1 billion per year
with Smart Grid.

Smart grid is a big opportunity for The Middle East &
North Africa (MENA) region.

These nations can incorporate their vast solar and
renewable resources, manage growing demand, reduce carbon emissions and cut
down on electricity system losses.

The new study called Middle East & North Africa Smart
Grid: Market Forecast (2012-2022) projects the smart metering market will reach
16.1 million units by 2022 with cumulative capital expenditure of $3.9 billion.

By 2022, 86 percent of homes and businesses in the Gulf
countries will have smart meters. Other MENA countries outside the Gulf will
develop at a slower pace – due largely to political risk – but represent larger
market sizes and also stand to realize strong benefits from smart grid
technologies.

All countries in the MENA region are facing high rates of
electricity demand growth, and the Gulf countries have some of the highest
levels of per capita electricity consumption and carbon emissions in the world.

Demand side management is becoming increasingly important
in these countries and smart meters will be an important tool in these efforts.

MENA countries are pursuing renewable sources of energy.
Saudi Arabia’s aiming to spend $109 billion to develop 41 GW of solar capacity
over the next 20 years.

Moreover, MENA countries are experimenting with a number
of policies to help curb domestic consumption of fossil fuels, including
feed-in tariffs for renewables, conservation outreach campaigns, and
electricity pricing mechanisms that more closely reflect the costs of electric
service (regional electricity prices are currently among the lowest in the
world).

Northeast Group forecasts 5 segments of the smart meter –
or advanced metering infrastructure (AMI) – market, including meter hardware,
communications, IT, professional services, and installation services for 12
countries across the MENA region.

editor@greentechlead.com